Financial fundamentals for beginners
Monday, 9 September 2019
Managing money can be intimidating, especially when you're first getting started. And many people make mistakes with their money along the way.
But financial missteps can be costly and some can even have long-term consequences.
So, before you start making important financial decisions, it makes sense to familiarize yourself with the fundamentals of banking and money management. For example, how a checking account works, why you should save money, what overdraft protection is and how to handle a credit card.
With that in mind, we've gathered some essential financial and banking information for you in one convenient place. It's designed to help you understand the basics of money management as you start financial life, whether you're in charge of your checking account while in college or you've just landed your first job.
Understanding the different kinds of bank accounts
Banking is fairly simple once you familiarize yourself with the types of accounts, how they work, and what benefits they offer.
Here's an overview of the different types of bank accounts and some tips for figuring out which one is right for you. You can also read up on how to choose the right checking account for your needs and how to find the right savings account.
Why you may need overdraft protection
Let's face it: when you're young and starting out, you probably don't have a big balance in your checking account. But you do have many opportunities to spend money, and you might not be too diligent about checking your balance on a regular basis. That's where overdraft protection comes in.
Overdraft protection is designed to protect you when you overdraw your checking account — or spend more money than you have. This is very important because overdrawing your checking account can cause you to lose money. Learn more about overdraft protection now.
Why you should save money
Can you really start saving money when you're young? You can, and you should. In fact, figuring out how to save money is probably the most important financial lesson you can learn.
Why budgeting is so important
It's almost impossible to overstate the importance of having a budget. Even when you don't have much money, you still need to know how much you spend, what you spend it on and how you can save.
And while having a budget might sound like a complicated and boring undertaking, it really is easier than you think. Learn how — and why — you should start working on a budget now.
Understanding how credit cards work
Credit cards are incredibly handy and convenient. They can also help you track your expenses and manage your budget. But to really reap all the benefits credit cards offer, you need to understand how they work and how to handle them properly.
Special money tips for college students
Even if you're not footing the bill for your tuition, going off to college still requires you to start managing your own money. Establishing good money habits early on can help you for many years to come. At the same time, poor money management habits can affect you after college as well.
To help you get off on the right foot, take a moment now to read about the six financial rules every college freshman should know. You can also learn more about how to be smart with money while in college with these 15 tips.
Everyday ways to save money
Managing money goes way beyond bank accounts. You handle money every single day, whether it's buying lunch or paying your rent. And if you learn how to save money every day, you'll have more money in your accounts, be able to build your savings and start working toward your long-term financial goals.
The content provided is for informational purposes only. Neither BBVA USA, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA USA or any of its affiliates.
Links to third party sites are provided for your convenience and do not constitute an endorsement. BBVA USA does not provide, is not responsible for, and does not guarantee the products, services or overall content available at third party sites. These sites may not have the same privacy, security or accessibility standards.
You may also be interested in:
Credit or debit?
That's a question we often hear when we're shopping. We may automatically default to one choice, so it's easy to forget that not all plastic is the same.
What's a smart debt?
Debt can be a smart financial tool if you use it correctly. Do you know if your debt helping or hurting your financial future? Get insider tips here.